Match List-I with List-II:
| List-I | List-II |
|---|---|
| (A) Allocation of resources | (I) An organisation with some purpose |
| (B) Opportunity cost | (II) How much of which resource is devoted to the production of each good |
| (C) Institution | (III) The maximum amount of one good that can be produced for any given amount of the other |
| (D) Production possibility frontier | (IV) Also called the economic cost |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
Each term in List-I has its own meaning in the chapter.
| List-I | List-II | Reason |
|---|---|---|
| (A) Allocation of resources | (II) How much of which resource is devoted to the production of each good | Allocation is the sharing of resources among the goods to be produced. |
| (B) Opportunity cost | (IV) Also called the economic cost | It is so important in economics that it is also called the economic cost. |
| (C) Institution | (I) An organisation with some purpose | A market is called an institution because it is an organisation with a purpose. |
| (D) Production possibility frontier | (III) The maximum amount of one good that can be produced for any given amount of the other | The frontier marks the most that can be produced with the given resources. |
NCERT (2026-27): “1.1 A Simple Economy … By an allocation of the resources, we mean how much of which resource is devoted to the production of each of the goods and services.” “Note that the concept of opportunity cost is applicable to the individual as well as the society. The concept is very important and is widely used in economics. Because of its importance in economics, sometimes, opportunity cost is also called the economic cost.” “An institution is usually defined as an organisation with some purpose.” “Production Possibility Frontier … If all the resources are used in the production of corn, the maximum amount of corn that can be produced is 4 units and if all resources are used in the production of cotton, at the most, 10 units of cotton can be produced. … Any point on or below the curve represents a combination of corn and cotton that can be produced with the economy’s resources. The curve gives the maximum amount of corn that can be produced in the economy for any given amount of cotton and vice-versa. This curve is called the production possibility frontier.” |